French Bond Selloff on Political Peril Entices Buyers From Japan

A French bond selloff driven by the risk of the government’s collapse is being seen by some Japanese investors as a buying opportunity.

Fivestar Asset Management Co. and Nissay Asset Management Corp. say the rout may represent a window to deploy capital in a market that’s the third-biggest overseas destination for Japanese funds. One reason they cite is the largest yield premium on French 10-year bonds over their German peers since April.